Any step by China to allow banks to provide unsecured loans to qualified developers “would be a risky move” for the lenders, according to JPMorgan Chase & Co.
Such a measure “would be negative for banks as it would raise concerns about national service risk and credit risk in the medium term,” analysts including Katherine Lei and Karl Chan wrote in a note. What’s more, implementation “would be challenging, as banks could circumvent such guidance due to credit risk concerns.”
Read More : JPMorgan Warns of Risk in Unsecured Loans to Chinese Developers